The “Real” Cost to Build a Home in Atlanta
The cost to build a home in Atlanta is totally worth it—if you know what you're doing. Building your dream home from scratch ensures the house is built to your specifications. However, building a new home is usually much more costly than buying one.
House costs in Georgia vary quite a bit from $200,000 to $1,000,000, averaging between $330,685 and $727,509. However, this is the statewide average. In a fast-growing housing market like Atlanta, prices skew higher. A 2,000-square-foot house in Georgia costs about $364,868 to buy and around $395,000 to build. This leaves you with a decision to make: is spending the extra $50,000 on your dream home worth it to you? Furthermore, are you willing to be flexible on some of your customizations to make it cheaper?
To help you answer these questions, we’ve broken down the cost to build a home in Atlanta by construction phases.
Soft Cost to Build a House in Atlanta
The total cost to build a home in Atlanta includes “soft costs” and “hard costs.” Soft costs in home construction, like land, permit, and design expenses, indirectly impact the building process.
Land Purchase Cost
Before you can begin building a house, you need a place to put it. If you already own land to build a new home on, you’re in luck. The cost to build a house in Atlanta is cheaper if you already own appropriate property. That way, you only pay for building costs.
If you’re shopping for land, know that you’ll incur not only the purchase cost, but also the preparation cost—necessary clearing and leveling of the land before building. In Atlanta, an acre costs around $30,000. Of course, the final price depends on the size and location you want. The cost for land preparation is usually between $1,500 and $3,000.
A Note about Production Homes
When budgeting your cost to build a home in Atlanta, make sure you understand the difference between a custom home and a "production" home.
A production home is usually constructed in a developing neighborhood by one or more builders. When you buy a production home, all costs, including the land and building, are part of the price. Sometimes you might have to pay a bit more than the standard price, like for a bigger or better lot location.
On the flip side, a custom home involves getting the land on your own or buying a lot from a builder. Then, you hire a contractor to create a unique home just for you. Financing for custom homes includes a construction loan and a permanent loan, sometimes both from one lender. Custom homes in Georgia have a wider price range than production homes.
Atlanta Building Permits
Contractors are required by law to have not one, but several different building permits in their possession before beginning construction. Potentially required permits and their cost range include the following:
Building Permits—$1,000 to $2,000
HVAC Permits—$250 to $400
Plumbing Permits—$50 to $500
Electrical Permits—$10 to $500
These permits are legal documents that authorize building work, with costs varying based on county. Factors like construction type, occupancy, home size, and project scope also influence the cost to build a home in Atlanta.
Interiors, Finishes, and Fixtures
Think about those final necessary touches you’ll need to cover before moving in, such as furniture, electronics, and bathroom basics. Costs for these items depend on your style, finish quality, location, and where you shop. For a 2,500-square-foot home, plan to spend at least $20,000 on new furnishings.
If interior design isn't your thing, you can hire a designer for around $5,400. They'll show you 3D views, choose furniture, wall decor, rugs, and more based on your likes. The cost can vary based on your needs.
Additionally, your spending on finishes and fixtures will also vary based on your budget and style. For instance, bathroom costs in Atlanta range from $1,800 to $25,000.
You’ll also have to consider flooring finishes. In Georgia, expect to pay $12.50 per square foot for flooring installation. Vinyl is cheaper at $3 per square foot, while high-end hardwood can cost up to $22 per square foot.
Doors are another matter. Exterior door installation in Georgia averages about $1,280 covering materials and labor. Labor costs range from $75 to over $1,200 per door, and materials vary from $50 to over $6,000. Interior door installation is cheaper, ranging from $360 to $1,211 per door. Labor costs range from $100 to $300, with most doors costing $50 to $500. Wooden French doors start at $600.
The cost for new windows depends on the materials you choose, the number of windows, and the size of your house. Vinyl windows are the most common type, mostly because they’re affordable and durable. A standard double-hung vinyl window runs between $500 and $700 to install. At this price, you’d pay between $4,800 to $6,700 for 10 windows in a 1,000-square foot house. On the other hand, for 50 windows in a 5,000-square foot house, the total cost for windows could range from $23,900 to $33,500. Window installation in Georgia varies from $3,128 to $10,726 per window, with the average cost at $6,913. Window type, quantity, and labor all affect the total cost.
Hard Cost to Build a House in Atlanta
The term “hard costs” in construction refers to the money spent directly on building a house. The hard costs to build a home in Atlanta typically include the following:
Foundation
Framing
Roof
Siding
Appliances
Plumbing system
Electrical system
HVAC system
Foundation
Once you have the land to build your house on, it’s time to dig a big hole in it. The first hard cost to build a home in Atlanta is the foundation, and the price depends on the size of house you’re going for. In Atlanta, concrete foundations cost $5.60 per square foot for a 4” slab and $7.50 per square foot for a 6” slab. Add waterproofing at $27.02 per square foot and a French drain at $19.41 per linear foot. A word to the wise—foundation repairs in Atlanta cost around $200 an hour plus materials, so it’s important to make sure it’s done correctly to begin with and address issues early on.
Framing
Framing refers to constructing the basic structure and skeleton of a house, including walls, floors, and roof. It provides support and stability for the entire building.
Framing costs for houses vary based on location and size. For example, framing a 1,500-square-foot house is cheaper than framing a 3,000-square-foot one. In 2023, costs to frame a home in Atlanta averaged $4,916, ranging from $983 to $8,850. These costs don't cover materials, building fees, taxes, permits, or contractor fees, which all depend on the location and materials used.
Roofing
Now your new house needs a hat. Roofing costs in Atlanta are around $8,837. Remember, the roof is a crucial part of any building, providing protection against the elements and contributing to the overall aesthetic. Roofing costs depend on a few factors, such as materials, size, and roof pitch. Each of these factors in turn affect your total cost to build a house in Atlanta.
However, it's also important to consider the longevity and durability of the materials being used. While some may be more expensive initially, they may save you money in the long run by requiring less maintenance and repairs.
Different roofing materials are available, each with its pricing. Choices include TPO or PVC membranes for flat roofs, 30- or 50-year shingles, slate, and concrete tiles.
Compared to replacing a roof, installing a new one requires extra materials like vents, flashing for skylights, chimneys, and underlayment. These will also factor into your roofing budget.
Siding
Siding protects your home from the elements while also providing insulation. While it does affect the total cost to build a house in Atlanta, choosing quality siding can lower heating and cooling expenses in the long run. It also enhances the curb appeal of the property.
Siding runs between $2 and $10 per square foot, depending on house size and materials.
Vinyl siding, the most popular choice today due to low maintenance and cost, ranges from $2 to $7 per square foot, including installation.
Wood siding, which is eco-friendly but needs more maintenance to resist bugs and mold, costs $3 to $10 per square foot, including installation.
Metal siding, popular in harsh weather regions, costs $2 to $8 per square foot, including installation. The cost varies based on aluminum or steel choice.
Appliances
Appliances are the sort of things you probably won’t bring with you when you move from your current home. Make sure to include them in your total cost to build a home in Atlanta. A complete set of new home appliances will usually set you back between $10,875 and $24,400. Important items to buy are a refrigerator, a washer and dryer, an oven, and a dishwasher.
Plumbing
Now we’re on to the key systems—plumbing, HVAC, and electrical—to include in your cost to build a home in Atlanta, beginning with plumbing. Plumbing typically costs $12,000 for installing fixtures such as toilets, faucets, wash basins, bathtubs, and more. Homeowners usually budget around $4.50 per square foot, totaling about $4,080 for plumbing in a new construction.
For building a custom home in Atlanta, plumbing includes hiring a plumber for pipe installation and sewage line laying. Don’t forget to include the installation of washing machines, dishwashers, and water heaters.
HVAC
The installation of a new HVAC system comes with a price tag ranging from $1,500 to $12,500 for homeowners. The total cost is subject to variables such as the size of the cooling area, the chosen system type, the brand, and other factors. These additional considerations have the potential to raise the HVAC installation cost by $2,000 or more—which must in turn be factored into the total cost to build a new home in Atlanta.
Contractors
A general contractor hires pros like electricians, architects, plumbers, and carpenters. Contractors typically charge 10% to 20% of the total value. The percentage varies based on property type, details, materials, and workforce size. Consider each pro's hourly rates too.
Worth the Cost to Build a New Home in Atlanta
The cost to build a home in Atlanta may be high, but it can definitely be worth it. Not only do you get to customize your dream home to your exact specifications, but you also have the opportunity to live in one of the best places in the country.
Despite the estimated costs being higher than buying an existing home, there are still ways to make your dream home more affordable. This includes being flexible on location and design elements, as well as doing thorough research and working with a reputable builder. Additionally, living in Atlanta has many benefits beyond just building a home. With its diverse landscape and growing population, there is plenty to see and do in our beloved city.